What Is The #1 Rule Of Salary Negotiation?
It’s not unexpected that many people find it challenging to request higher pay once their job hunt is over and they have an offer. They want to take advantage of the opportunity now that they’ve made it this far, especially if the pay is fair.
However, the hiring process in many markets has surpassed pre-pandemic levels. In addition, there is a need for more qualified professionals, which makes it more difficult to find top talent and raise wages.
If you don’t negotiate a compensation offer while having specific expertise and a strong resume, you can be passing up money. Most recruiting managers will give you time to consider the offer and will wait for your response.
You may feel pressured to accept the first offer, close the deal, and move on to the next career phase. However, this may not be in your best interest. 84% of companies, in reality, anticipate that candidates will haggle over their offer.
In other words, if you take the first job offer, you might pass on a job with a higher salary. What can you do to have the best available opportunity at the best salary? The simple solution is to properly negotiate your salary and secure the sum you genuinely deserve. That’s precisely what you need and can do to achieve your desired place and position with the company of your choice.
This article will cover everything you need to know regarding why you need to negotiate your salary first, the benefits of negotiating salary, and the most helpful salary negotiating tips.
Reasons Why You Need Salary Negotiating Tips
Knowing what to ask for can be challenging because few job postings include the pay range. However, how would you know if the wage was reasonable or if you should have demanded more when you accepted the job offer?
The wage or salary range is not set in stone, even if it is disclosed before the interview. Most of the time, you should negotiate to receive a more significant wage than the first proposed. To get the finest wage package possible for a new job, it’s in your best interests to do your homework and haggle rather than accept the offer with gratitude.
The most crucial areas you need to know before negotiating your salary include the following:
- Knowing Your Worth
- Evaluating Your Expertise and Skills in the right way
- How to Present yourself the right way in the market
Here are some more reasons why you need to negotiate your salary before you join:
- There’s Nothing to Lose
As the saying goes, you don’t get what you don’t ask for. Employers will anticipate that you will bargain. Make a list of why the company should provide you with a better compensation package. Asking for what you need and require isn’t illegal or unfair. Even if you don’t get what you ask for, you still won’t lose anything so there’s nothing wrong with asking for what you deserve.
- Employers Can Pay Your More
It’s acceptable to haggle about your pay. Most companies will have budgeted for more than they initially offered you and would expect you to ask for more. Even if they give you a lower wage than you desire to suggest that they can’t afford you, they probably can.
The starting salary you get will serve as the benchmark for any future pay increases you request and career changes you pursue. Therefore, starting out with the best income can benefit you throughout your career.
The longer you continue on the same salary, the worse. You can break the pattern to some level if you negotiate your salary at the beginning. Your starting wage has an impact on all subsequent salaries.
Keep in mind that it’s not always about money. Benefits like a matching 401K plan, industry-leading parental leave, or the freedom to work from home are occasionally more critical to you. Make sure you consider your pay as a whole, giving the wages and perks the appropriate level of attention.
- You Will Have to Wait For Pay Rise
You will typically have to wait a year until you can ask for, or expect, a wage increase unless you have been promised a 90-day or 6-month review from your starting date and have that put into your contract. Most organizations conduct annual reviews and salary increases every year. To keep up with the cost of living, you may only be given an increase in pay indexed to inflation.
You often need a compelling justification to request a pay increase before a company employs you for a year. All the more motivation to ensure you start on a wage you’re comfortable with that at least matches the average salary across the market and that recognizes the added value you can offer to the company.
- You Deserve It
Your pay and perks go beyond compensating you for showing up at work. They represent the worth you will continue to bring to your employer. If you were given the position, it was probably because you successfully persuaded the employer of your worth as an employee. If you have additional talents and expertise, you may be worth more than the salary standard for the position.
- There May Be Gender Disparity
Even at organizations that take demonstrate a progressive outlook, there may still be a gender pay discrepancy, albeit things are improving. Before you begin negotiating, it is essential to research the company’s gender pay disparity. Smaller businesses are urged to declare their pay gaps, whereas larger businesses with over 250 staff are legally required to do so.
Refrain from inquiring whether your payment is less than your male competitors, as they are not required to answer and may take offense at the inference. If you can’t find their gender pay gap report on their website or anywhere else, it is OK to inquire whether they have done so.
- You Might Be Undervaluing Yourself
Many people are naturally modest, however, you should never allow this to impact your salary and financial growth. Unfortunately, many job candidates unknowingly and unnecessarily underestimate their market value as employees.
Before the interview, research might help you determine the compensation you can realistically demand. Despite their importance, women are particularly prone to undervaluing ‘soft’ abilities like leadership and time management. When applying for a new job, they often request a wage increase of almost a quarter less than men do, according to research from Totaljobs. Take a big breath, be bold, and ask for more money than you currently make if that’s what your expertise and talents are worth in the market sector you’re applying to.
Estimate The Salary You Deserve
Research is the first step to knowing what salary to negotiate. By doing this, you can ensure that you are ready for every interaction and understand what the company might offer, the going rate for your position, and your expected salary. In your research, make sure to:
- Take a look at the pay data that is readily available. Salary data is gathered from websites like Glassdoor, Payscale, Salary.com, and the Bureau of Labor Statistics from people who have held various professional positions. You should think beyond the box if you’re looking for a more typical job title. Look at the pay scales for persons with duplicate titles as you and those working in organizations and industries similar to yours.
- A wage range should be listed in the job description. Due to the increase in pay transparency regulations, many businesses are now required to provide wage ranges in their job descriptions. It would help if you gained a better grasp of what they might offer you, or at the absolute least, the very minimum, even though some have wide ranges, so vast that it seems to contradict the intent of the legislation.
- Be more precise. Are you applying to a New York company for an entry-level accounting position? If so, your pay will probably differ from that of a Minnesota-based accountant with 10 years of experience working for a major company. Not only should you filter for pay information based on experience but also by region, industry, and employer type.
The #1 Rule of Salary Negotiation – Know Your Worth
Don’t just provide a number at random while discussing your compensation. Do your homework, determine your worth, and learn the typical salaries in your area. Before negotiating pay, you must understand precisely how much value you can provide an employer. Your salary may be influenced by several factors, including:
- Years of professional experience: If the position description calls for three to five years of experience and you have the more requisite experience, your remuneration may be increased.
- Geographical location: Take into account the expense of living there. For instance, because living expenses are typically more significant, you could need a higher wage in San Francisco than in Minneapolis for the same responsibilities.
- Years of leadership experience: Just like with industry experience, if the employer values or demands leadership qualities and you achieve or surpass their requirements, you may be entitled to a raise in pay.
- Career level: Generally speaking, you can anticipate a more extensive pay range as your career progresses.
- Education level: Depending on the position or industry, relevant bachelor’s, master’s, Ph.D., or specialist degree programs can affect your pay.
- Skills: Technical or specialized knowledge that takes time to master may result in better pay.
- Certificates and licenses: Your company can desire or demand that you hold specific certifications or licenses. You can be in an excellent position to ask for more money if you already have them. Be careful to restate why you’ll be a beneficial employee while negotiating your compensation, and think about citing the points mentioned above to support your case.
Some More Salary Negotiation Tips
Besides knowing your worth, some more salary negotiation tips can help one put their demand upfront most effectively and conveniently, such as:
- Backing your Argument
- Leveraging your situation
- Knowing when to stop negotiating
- Picking a range
- Being gracious
- Not accepting the first offer
- Making your stance clear
- Being transparent
- Not focusing too much on yourself
Following are the salary negotiating tips in detail and depth so you can know how to put your idea upfront in the right way:
Prepare Your Talking Points
It could be helpful to use the following question as a foundation for your talk as you create your negotiating notes: Why do you think you should be paid more than what the employer is willing to pay? Before contacting the employer, prepare a few talking points and be as straightforward as possible.
Practice Your Talking Points
It can boost your confidence and show you where to improve if you practice your talking points. The best approach to practice would be in front of a buddy or coworker who can give you constructive criticism. Alternatively, consider videotaping your chat or speaking in front of a mirror. This stage is crucial because having a conversation about money can occasionally be awkward. However, the more you practice, the more at ease you’ll be when the time comes.
Schedule a Time for Discussion
To schedule a phone interview, contact the hiring manager or recruiter. While it is acceptable to negotiate by email, having a conversation over the phone is strongly recommended. You may have a better dialogue, attitude of gratitude, and correctly state your needs when speaking over the phone, through video call, or in person. As the hiring manager or recruiter will be the one arguing for your payment to the decision-makers, try to be respectful and straightforward.
Be Confident
The words you use in your negotiation are as crucial as how you say them. The employer will be more assured in evaluating your input the more confidence you project. Arrogance, or perception of importance, should not be confused with confidence, which is an acceptance of our strengths and traits.
In a negotiation situation, a lack of confidence can also lead to over-explaining or apologizing for your request. Instead, boldly express your desired pay with a brief justification.
Get on Top of Your Range
Giving the employer a higher number than your aim is one essential tenet of wage negotiation. In this manner, even if they lower their offer, you will still receive a wage you are happy to accept. If you offer a pay range, the company will err on the lower end, so be sure the lowest value is still what you consider to be fair.
Discuss Job-related Expenses
You might also request a higher wage to pay any expenses you incur due to taking the position. For instance, if you’re moving to a different city for a job, you’ll need to pay for the moving charges and any fees related to renting or selling your existing house. If you accept a job farther from home, you must account for commuting costs like train fares, gas, and car wear and tear. Job seekers commonly request pay adjustments from employers to cover costs associated with accepting employment.
Be Flexible
The business can provide you with other forms of compensation even if they can’t give you the pay you seek. For instance, you can negotiate more work-from-home days to make up for a long commute, more vacation days, sign-on bonuses, or stock options. Be prepared to provide alternatives if the company informs you immediately that they cannot raise the salary offer. Sometimes, they could even be more precious than a wage.
Ask Questions
Try to maintain your composure and confidence if the other party in the negotiation seems astonished, responds poorly, or rejects your counteroffer immediately. Ask open-ended questions in response to their response to elicit further details and continue the discussion. Examples of queries are:
- On what is this position’s budget based?
- Are there other factors outside money that might be negotiated?
- What information do you need from me to make a choice?
Don’t Be Afraid to Walk Away
An employer might only sometimes be able to pay you the minimum wage you require or provide you with enough benefits to make the job worthwhile. The company could also make a counteroffer with a pay raise over their initial offer but below the amount you requested. You must determine whether the position is worth the lower pay in this situation.
You could be willing to accept a lower wage if it’s less stressful than your current job, it’s closer to home, gives you more flexibility, or gives you more free time. If not, consider turning down the job offer if you remain seeking.
Be Grateful
You’ve undoubtedly spent a lot of time and effort applying for the job, getting interviews, and waiting for the job offer stage of the hiring process. You must acknowledge the employer’s time investment in the process and express gratitude for giving you the opportunity. Share any particular motivators for your enthusiasm for the position, such as the company’s culture or offerings.
Even if you decide to reject the offer, it’s crucial to do it politely and professionally. After all, you can never be sure what possibilities may come your way in the future with this employer.
Don’t Focus Too Much on Yourself
Negotiations involve both parties. Focus on how you would be more helpful to the organization than yourself. Tell the recruiter specifically how you meet and exceed the job requirements. You can also mention any prior success in a comparable position that you may have had.
Consider Perks and Benefits
Salary is one of many considerations in a job offer. In other circumstances, the income may seem low on its own, but when you add up all the advantages and benefits you receive from the organization, it may end up being much better than it appeared to be. For instance, some employers provide:
- Superior insurance policies
- Various days off
- Budget for personal development
- Choice of working from home
- Better retirement savings plans
To have a more accurate picture of the situation, remember to consider perks and advantages when evaluating employment offers. Additionally, some employers could be unwilling to compromise on the pay range yet open to adding extra perks.
Leverage Your Situation
Your negotiating strength ultimately depends on your current circumstances. Discuss how much it is essential for you to have a decent salary, and how this will greatly affect your current situation. Everyone wants to experience financial growth and it is your right to ask for it. Discuss how your skills and abilities can add value for your prospective employer to try to convince them you’re worth the extra investment.
Be Transparent
Make it known that you care deeply about the organization and the position when discussing salary. Also, make it clear that even if you have other job offers, you still choose this company—so long as they can make you a more lucrative offer. You don’t want to come across as the kind of worker who is only looking out for their financial interests and only concerned with securing the highest wage possible, which is the justification for this.
When the salary discussion is over, ensure the employer records it in writing. This covers the increased salary and any perks or benefits you could negotiate. Making the new arrangement formal guarantees that there has been no misunderstanding and that everything is evident to all sides.
Conclusion
While there might be many job opportunities available in the market, negotiating your salary can be the best approach that can catalyze your career’s growth and corporate reputation. The salary negotiating tips mentioned above will not only help you get your desired salary but will also help in achieving a respectable place in your organization along with additional perks and benefits.
If you wish to learn more effective management and leadership skills, contact us at Ionji Consulting, to learn from the experts how you can increase and enhance the quality of your hiring more efficiently.
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